Technology Stocks Cheapest to S&P 500, UBS Sees Gain

Computer and software shares have slumped to the lowest valuations in two decades, a sign to Barclays Wealth and UBS AG they will rebound as Standard & Poor’s 500 Index companies start spending their record cash.

Technology companies in the benchmark index for U.S. equities fell as much as 17 percent this year, pushing prices down to 15.6 times reported annual income, according to data compiled by Bloomberg. The biggest industry in the index hasn’t been this cheap since at least 1992, excluding the six months between Lehman Brothers Holdings Inc.’s bankruptcy and the start of the bull market in March 2009.